Jobcentres and the DWP Estate

Damian Hinds Excerpts

Thursday 20th July 2017 Westminster Hall

[Ronnie Cowan (Inverclyde) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Evans. I thank my hon. Friend the Member for Glasgow South West (Chris Stephens) for securing this debate.

In Inverclyde, we currently have two jobcentres: one in Greenock and another in Port Glasgow. Following the UK Government’s consultation, it was determined that the Port Glasgow jobcentre would close, while the Greenock office would be moved to an as yet undetermined location. I believe that this decision is short-sighted and sympathise with the views of staff at the Port Glasgow jobcentre, who have expressed understandable concerns regarding the impact of this change on their clients.

The Minister should know that Inverclyde has some of the worst levels of social deprivation in the UK. Some 26% of children in Inverclyde grow up in poverty; one in 10 live in severe poverty; youth unemployment is more than double the UK rate; and the number of people on jobseeker’s allowance or required to find work on universal credit is double the rate in the UK as a whole.

It might be thought that such a set of circumstances would prompt the Government to grant additional support to the area. Instead, the UK Government’s response has been to cut benefits and halve the number of jobcentres in my constituency. A report issued by the Scottish Government found that Inverclyde will experience one of the most significant falls in welfare spending of any Scottish local authority relative to the size of its working-age population. By 2021, this will amount to an overall cut of £15 million—the equivalent of £298 per working-age adult.

Given the challenges that Inverclyde faces, I think it would be appropriate for the Minister to visit my constituency. That is why I wrote to him on 14 June and extended an invitation to meet not only me, but the jobcentre management to discuss the impact of the proposed closure on my constituents. And yes, I am still waiting for a reply. A ministerial visit would also be an opportunity for the UK Government to provide some much-needed assurances regarding the long-term future of the Greenock office and the vital service that it offers. I can see the Minister looking quizzically at me. Is he questioning what I am saying?

[The Minister for Employment (Damian Hinds)]

indicated dissent.

[Ronnie Cowan]

Okay. Is the proposed closure of the Port Glasgow jobcentre about providing a better service for users? No, of course it is not. In the words of the Public and Commercial Services Union, the UK Government are “abandoning the unemployed” at a time when many people on lower incomes are facing uncertain futures with respect to their employment.

--- Later in debate ---

[The Minister for Employment (Damian Hinds)]

It is a delight to serve under your chairmanship, Mr Gapes. I congratulate the hon. Member for Glasgow South West (Chris Stephens) on securing the debate. He and others will be aware that this subject has already been debated extensively in Parliament. There has been an Opposition day debate, a Westminster Hall debate, an Adjournment debate and a Back-Bench business debate. There was another Westminster Hall debate yesterday, specifically on south Wales. The issue has been raised at DWP questions and Scotland Office questions. There have been two urgent questions and a substantial body of written questions.

Today’s debate has been wide-ranging. We heard a full exposition from the hon. Member for Glasgow Central (Alison Thewliss) and a very interesting speech from the hon. Member for Wirral West (Margaret Greenwood). In the time left, I will do my best to cover as many of the points that have been raised as possible.

The Government are committed to maintaining our record of protecting the most vulnerable while supporting everyone to fulfil their potential and play their full part in society. That includes reforming the welfare system by making work pay, supporting those unable to work and examining our assets to ensure that we are deploying resources effectively. On 31 March 2018, the DWP’s 20-year private finance initiative contract with Telereal Trillium, which covers the majority of the DWP’s current property portfolio of some 900 sites, comes to an end. That date provides an opportunity—indeed, an imperative —to review which office locations we need and how our estate is to be managed in the future. We have sought to do that in a way that delivers better value for the taxpayer and makes best use of the space available, while continuing to deliver vital support to claimants and pursuing our reform agenda.

[Margaret Greenwood]

Will the Minister give way?

[Damian Hinds]

I am sorry, I will not. The hon. Lady will have to forgive me, but I want to answer as many questions as possible.

To give some context, the DWP occupies about 1.5 million square metres of office space, but the way it operates is significantly different from 20 years ago, meaning that at least 20% of that space is under-occupied. The falling claimant count and the increased use of online services in recent years mean that 20% of the money the Department spends on rent goes towards space we are not using. By paying only for the space we need and the services required to operate from it, we anticipate saving £140 million per year over the next 10 years. To be clear, this is not about reducing services—the hon. Member for Wirral West alluded to that—but about taking the opportunity to stop spending taxpayers’ money on empty space and instead spend more to support those in need.

The labour market is in its strongest position for some years: the employment rate is 74.8%, the joint highest figure on record, and since 2010 unemployment has reduced by 913,000 and the overall number of people claiming the main out-of-work benefits has fallen by more than 1.1 million. In Glasgow over the past four years, the claimant count has come down from 27,890 to 16,800. The DWP estate is bigger than it needs to be, is not flexible enough to deal with the needs of the Department’s customers now and in the future and, in some instances, is of poor quality, preventing improvements such as digital innovation and more interactive ways of working with customers.

The Department is not transforming its estate in isolation. In June 2013, the Government published their first overall estate strategy, which was expanded in October 2014. The strategy aims to ensure that all Departments are working towards an effective and efficient Government estate that provides value for money to the taxpayer, delivers better, more integrated public services and acts as an enabler of growth. In January this year, we announced proposals to rationalise the DWP estate. The proposals encompassed most of our Jobcentre Plus offices, processing centres and head office buildings. Our announcements on 5 July finalised those plans for the majority of sites.

In our processing centres, the changes move towards creating larger, modern, digitally enabled centres, with teams working on several areas coming together to deliver a joined-up, efficient service to our customers. The focus is on creating an estate with a much improved working environment, with more opportunities for our staff to develop, learn new skills and progress.

Significant investment starting in 2018 will include the opening of a new processing centre in Glasgow, which will allow us to bring together colleagues from smaller, older sites across the area into a new property fitted out to create an efficient, effective working environment that allows the DWP to align more closely with other Departments working in the area. With the existing large processing site in Northgate, that will result in a DWP presence of more than 2,000 staff in Glasgow. In total in Scotland, we will keep a substantial processing presence, with large sites in locations such as Falkirk and Kilmarnock expanding to bring further jobs into those areas.

That investment will continue with a new purpose-built site in the Treforest area to the north of Cardiff in south Wales, which will bring together colleagues from smaller, older sites across the region into a new building and provide about 1,600 jobs in one of the most deprived areas in the UK. We are also working on similar large processing sites in Bristol, Birmingham and Hastings. Together with the changes to how we work in some of our remaining properties, that will create a processing estate that will be able to support the Department well into the future, while remaining flexible enough to deal with changing needs over the coming years.

The changes in the jobcentre network focus on three things: first, moving some jobcentres to shared Government premises to allow for better, more efficient use of space and a more co-ordinated service; secondly, moving some jobcentres to new buildings because the quality of the existing property is not up to scratch or is unable to meet the needs of our customers now and in the future; and thirdly, merging smaller and underused jobcentres to create larger operations that offer a better, more joined-up service to our customers. The changes include around 40 new opportunities to collocate jobcentre services into local authority or community premises, which will result in about 80 collocations in total.

In Scotland, we have 95 jobcentres, which is more jobcentres per head of population than in England. The changes will result in 11 jobcentres merging into nearby offices, three jobcentres moving into shared offices with local authorities and councils, and one jobcentre moving into an improved building in the same town. The resulting 85 jobcentres across the country still leaves Scotland with significantly more offices per head of population than England.

In Glasgow, we have 17 jobcentres, which the hon. Member for Glasgow South West acknowledged in his opening speech was more per head of population than in any other major city in Great Britain. Even with the reduction to 11 jobcentres, Glasgow will continue to have more per head of population than other cities. We consulted on three moves in Glasgow—Maryhill, Castlemilk and Bridgeton—and held a further consultation on Broxburn. The changes will enable the Department to offer a more efficient service while delivering value for the taxpayer.

The changes have been developed working closely with local leaders, using their local knowledge of the area, travel network, customers and community needs. Distance and journey times were calculated using a variety of methods to ensure accuracy in our planning, including online tools and timetables, as well as information collected on local public transport routes. Most importantly, that was all used to inform discussions with local staff, with their experience and knowledge of their areas.

Any change with an impact on DWP employees has involved consultation with them and their trade unions. In most cases, staff consultation began with an announcement back in January, followed by three to five weeks of discussion when we considered the impact of any changes on their offices. We have consulted the public on any jobcentre mergers that may mean customers will have to travel a little further. There is no statutory requirement for such consultation, but we were committed to making the decisions in consultation and have conducted public consultations on all proposed closures of jobcentres that fall outside the ministerial criteria.

[Chris Stephens]

Will the Minister give way?

[Damian Hinds]

I was trying to leave the hon. Gentleman a minute at the end, but he may go ahead.

[Chris Stephens]

The Minister has outlined the Government strategy. May I ask him a simple question? Is he saying that more jobcentre closures are on the cards? In other words, is the Department planning more closures?

[Damian Hinds]

I am fairly sure that I was talking not about that, but about the consultation criteria. At the end of the process, we will have a settled estate, which will put us in a better position to share services and so on with other bodies.

I will skip over some of my material and respond directly to some of the questions that came up in the debate. The hon. Member for Wirral West asked about concerns about travel times and travel costs. I reassure Members that claimants can be reimbursed for any travel to jobcentres that is more frequent than fortnightly. For those on JSA for more than 13 weeks and, in some circumstances, from the very first day on other benefits, it is possible to apply for a Jobcentre Plus travel discount card, which is available for different local transport companies. Of course, anyone on employment and support allowance is not asked to attend the jobcentre regularly. The existing outreach services and the additional ones that we will put in place as a result of the changes will give us more presence in local areas.

On sanctions, the point is that we ask people to make reasonable efforts to get to appointments and other things they have committed to as part of their job search. There will be a transition time as people get used to different arrangements, but the requirement for people to make reasonable efforts will always remain.

On access to online facilities, DWP always has an alternative to online, but in this day and age it is also true that to look for work and to be in work, it is increasingly essential to have some IT skills. We therefore think it is important to help people with that, which is one of the reasons why we provide IT equipment in jobcentre lobbies and have people who can help claimants with it.

The hon. Member for Glasgow South (Stewart Malcolm McDonald) asked whether the other jobcentres in Glasgow have the capacity to take in the extra operations. The answer is that they do—that is the entire basis of our plans. We will put outreach in place in those locations where we had a public consultation because the distances travelled would be a little further.

We want to minimise all risk of job losses. We have not yet completed all the conversations with staff, and we are continuing to have those one-to-ones. The DWP has a good record over many years of retaining staff. We will seek to facilitate that as much as possible.

Some of the questions were about working with the Scottish Government. We are keen to do so, and we look forward to more such opportunities in future. I was also asked about the equality impact assessment, and we have built in consideration of the impact on people with protected characteristics through all stages of the estates project process. We will continue to do so, thus fulfilling our duty under the Equalities Act 2010.

[Mike Gapes (in the Chair)]

You have 10 seconds, Mr Stephens.